K & Ors v P & Ors [2019] EWHC 589 (Comm) (13 March 2019)

K & Ors v P & Ors [2019] EWHC 589 (Comm) (13 March 2019)

Serious irregularity and substantial injustice occurred where the tribunal failed to deal with the issue of whether payment of the MSPA purchase price satisfied the 'payment out' requirement for warranty/indemnity claims, failed to allow Buyers to respond to new arguments on the Yarmolintsi Silo, and decided Net Debt issues without notice; these points are remitted to the tribunal. No serious irregularity found regarding QLL issue.

Citation
[2019] EWHC 589 (Comm)
Parties
Claimants: K and others; Defendants: P and others
Jurisdiction
England and Wales
Judgment Date
13 March 2019
Procedural Posture
Arbitration Challenge Under Arbitration Act 1996 S.68 / Judgment on Application to Set Aside/remit Arbitral Award
Outcome
Application allowed in part; award remitted to tribunal for reconsideration of three issues.
Legal Topics
Serious Irregularity, Breach of Warranty, Indemnity, Procedural Fairness, Remission of Award
Arbitration Commercial Law Serious Irregularity Breach of Warranty Indemnity Procedural Fairness Remission of Award

Case Brief

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Parties

K and others

Claimants

P and others

Defendants

Procedural Posture

Arbitration Challenge Under Arbitration Act 1996 S.68 / Judgment on Application to Set Aside/remit Arbitral Award

Legal Issues

  1. 1 Whether the arbitral tribunal committed serious irregularity under s.68 Arbitration Act 1996
  2. 2 Whether the tribunal failed to deal with issues put to it
  3. 3 Whether procedural unfairness occurred in relation to new arguments and evidence

Ratio Decidendi

Serious irregularity and substantial injustice occurred where the tribunal failed to deal with the issue of whether payment of the MSPA purchase price satisfied the 'payment out' requirement for warranty/indemnity claims, failed to allow Buyers to respond to new arguments on the Yarmolintsi Silo, and decided Net Debt issues without notice; these points are remitted to the tribunal. No serious irregularity found regarding QLL issue.

Court Disposition

Application allowed in part; award remitted to tribunal for reconsideration of three issues.

Orders

  • Award remitted to existing tribunal for determination of (1) whether payment of MSPA purchase price satisfies 'payment out' requirement, (2) proper measure of loss for Yarmolintsi Silo, (3) Net Debt claims.
  • If parties cannot agree on costs, Sellers to pay 60% of Buyers' costs of application, subject to detailed assessment if not agreed.